Suntory Global Spirits is deepening its imprint in India’s thriving travel retail sector with a clear focus on premiumisation and experiential retail. Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits, outlines the group’s strategic expansion and growing resonance among discerning Indian consumers, especially with the launch of the Bowmore Appellations Collection, now exclusively available at Delhi Duty Free and Ospree Duty Free, Mumbai (Arrivals).
Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits
This exclusive single malt series features four rare, age-statement expressions, each finished in casks from celebrated European wine regions, fusing Islay’s signature smokiness with rich global terroirs. “The Bowmore Appellations Collection reflects our commitment to premium storytelling and innovation in the travel retail channel,” notes Thukral.
Expanding Footprint with Premium Spirits
India’s travel retail market is on a growth trajectory, propelled by surging international and domestic passenger movement and a strong appetite for luxury offerings. Suntory Global Spirits has positioned itself strategically with a comprehensive portfolio that spans across iconic Japanese whiskies—Yamazaki, Hibiki, Hakushu, Chita, and Toki—under The House of Suntory. This is complemented by American legends Jim Beam and Maker’s Mark, Islay favourites Bowmore and Laphroaig, and premium white spirits Roku Gin and Haku Vodka. Notably, Suntory’s portfolio also includes India-specific expressions tailored to local tastes, underscoring a nuanced and market-sensitive approach.
Creating Awareness Through Immersive Experiences
Suntory Global Spirits is not only selling bottles—it’s offering experiences. At the flagship Delhi and Mumbai duty-free outlets, the company has curated immersive shop-in-shop boutiques. These spaces feature Kigumi-style wooden lattice architecture, Marumado-inspired digital screens, Zen garden podiums, and interactive digital panels exploring artistic collaborations, including with Japan’s Chiso Kimono House.
A dedicated section on The Art of Japanese Gifting, complete with customisable Kandji cards, further enhances the shopping journey, reflecting the Japanese spirit of Omotenashi—wholehearted hospitality. “These installations aim to educate and engage, turning a duty-free visit into a meaningful cultural moment,” adds Thukral.
Capitalising on India’s Single Malt Surge
Recent data from the IWSR shows Indian Single Malts (ISMs) overtaking Scotch Single Malts in domestic sales for the first time in 2024, growing by over 25% this year following 75% growth in 2023. This transformation signals a distinct consumer pivot towards premium, character-rich whiskies.
“Such growth validates our long-term investment in India,” says Thukral. “While our Japanese whiskies continue to lead with global prestige, our Scotch single malts—including Bowmore and Laphroaig—are also seeing increasing demand.”
The introduction of travel retail exclusives like Bowmore Appellations is a strategic move to capture this discerning customer base.
Beyond India: Global Footprint with Local Relevance
The same emphasis on curation and premium offerings applies across other key travel retail markets like Dubai International Airport and Singapore Changi Airport. While the core lineup remains consistent, each market receives tailored activations and launches to cater to regional preferences.
The Kogei Collection – Japanese Kimono Edition (2024) and the Bowmore Appellations Collection, both GTR exclusives, have been rolled out in these locations, amplifying global brand synergy while respecting local consumer nuances.
Market Share and Future Pipeline
With a 5.5% share in the Indian market, Suntory Global Spirits is seeing robust growth—particularly at international airports, where average basket sizes and conversion rates are significantly higher. “It’s not just about volume, but the quality and aspiration behind each purchase,” says Thukral.
Looking ahead, the brand promises a pipeline of innovative, limited-edition expressions designed exclusively for travel retail. These are aimed at travellers who seek more than just a purchase—they seek a story.
“Our mission is to offer travellers a deeper connection to our brands—be it through craftsmanship, cultural heritage, or exclusive taste journeys,” concludes Thukral. “And India remains central to that vision.”
Walk into a liquor store today and you’ll spot it: the distinctive label, the sleek bottle, the growing shelf space. Rockford has carved its own path in the premium whisky segment. Behind it is Abhishek Modi, Executive Director of Modi Illva India Pvt. Ltd., a third-gen entrepreneur with a sharp instinct for what works, what sells, and what sticks. He has got degrees in chemical engineering and business, sure, but what drives him is an eye for detail and a taste for building things that last.
Modi Illva is a 50:50 joint venture between the Umesh Modi Group—whose businesses span pharmaceuticals like Betadine, cosmetics like Revlon, and large-scale distilleries—and Italy’s Illva Saronno, the makers of global staples like Disaronno and Tia Maria, with a presence in over 160 countries. Together, they’ve built a spirits company that continues to expand its footprint across India, with flagship labels Rockford Reserve and Rockford Classic at the forefront.
The company has recently announced an INR 100 crore investment in a dedicated malt distillery at its Modinagar facility, scheduled to go live by December 2025; a move that will support its ambition to produce premium single malts and scale up existing production.
In this conversation with Ambrosia, Modi shares insights on scaling distribution, why Tier 2 cities are key to their strategy, what shapes consumer loyalty in premium segments, and how the company is building for long-term relevance in a competitive alco-bev market.
Modi Illva’s growth in the premium spirits segment has caught the industry’s attention. What factors do you believe are driving this momentum today?
Several elements have contributed to this momentum, both within the company and in the broader market. A key reason is the change in buyer behaviour; particularly among younger, aspirational drinkers, towards quality and authenticity. At Modi Illva, we’ve responded by creating products that match these evolving tastes. Consistency remains central to our production philosophy. We’ve also developed a strong brand narrative rooted in our heritage while incorporating innovation. This blend has helped us connect with audiences, even in areas where brand loyalty is hard to earn. Our long-term investment in regional markets and ongoing relationships with customers has played a crucial role in maintaining this trajectory.
What’s your roadmap for the House of Rockford over the next few years? Can we expect new variants or entries into different whisky sub-segments?
Innovation continues to shape our direction at the House of Rockford. We’re not only working on new expressions but also rethinking how premium whisky can evolve for Indian palates. The coming years will bring considered portfolio additions and renewed trust-building. While Rockford Reserve and Rockford Classic are already well-established, we are examining avenues in craft, blended segments, and age-specific offerings. Collaborations with select distilleries are also being explored for limited releases that appeal to both existing patrons and first-time buyers. All future launches will uphold the standards Rockford is known for.
You’ve built a premium whisky portfolio that resonates with a discerning audience. Which markets or cities are you focussing on currently and why do these matter in your expansion strategy?
Tastes across the country are becoming more sophisticated, and whisky is increasingly tied to individual identity. While major metros such as Mumbai, Delhi, and Bengaluru remain integral, there’s substantial growth in locations like Jaipur, Indore, and Lucknow. These cities are seeing a rise in purchasing power and interest in elevated options. Our attention on Tier 1 and select Tier 2 hubs stems from the pace at which these regions are transforming. Early engagement helps us decode local nuances and develop meaningful connections with new audiences.
Distribution often makes or breaks a brand in the alco-bev space. What is your current approach to building a strong, scalable distribution network and how are you aligning it with consumer demand?
Ensuring availability across the right retail formats, pricing tiers, and channels is essential. We’ve already secured placement in 80% of relevant outlets nationwide. Our framework is structured to be both agile and robust, enabling us to respond to demand patterns swiftly. We rely on trusted partnerships across distribution and retail, built over time. As we continue expanding, our supply chain is being reinforced to maintain visibility without compromising on the aspirational nature of our labels. The system is designed to progress alongside the audiences we serve.
Is there a conscious push towards investing in marketing to strengthen brand recall, especially in newer or emerging markets? How do you measure that impact?
Our campaigns prioritise building real-world resonance rather than chasing volume alone. In newer geographies, we’ve increased our digital presence and local outreach—particularly in Tier 2 and 3 areas—where authenticity and regional relevance shape perception. We measure success through repeat sales, brand stickiness, and customer feedback loops. Meaningful interaction outweighs visibility metrics, and our approach reflects that principle.
We’ve seen an increased interest in Indian single malts, both locally and globally. Is that a category you’re actively exploring or building towards?
The traction around Indian single malts is undeniable, and we’re observing the space closely. Rockford has firmly established its place among premium blends, and we continue to track shifts in craft spirit preferences. Introducing a single malt would require a label that mirrors the quality benchmarks we uphold. For now, we’re expanding our existing portfolio while evaluating future entry points with care.
Production scalability becomes critical when a brand starts accelerating. Are there any backend developments or facility expansions in the pipeline to support your growth goals?
Yes, we are actively upgrading infrastructure to support upcoming requirements. This includes capacity enhancement, improved distillation technology, and streamlined logistics. Environmental responsibility is built into these upgrades. We’ve also fortified our quality assurance systems to deliver consistency, whether the batch size is small or scaled up. These steps are essential as we look to meet rising domestic demand and enter additional global territories.
From a consumer trends perspective, what shifts are you observing in India’s premium alco-bev consumption and how is Modi Illva adapting to meet those expectations?
There’s a marked movement among younger drinkers toward experiences tied to cultural connection, storytelling, and identity. At Modi Illva, we’ve responded with offerings such as Singhasan, a 100% Indian whisky designed for those seeking local relevance. The goal is to create products that reflect this mindset, while maintaining brand integrity and delivering a richer journey for the buyer.
Sustainability is no longer optional. Are there efforts underway at Modi Illva to make production, packaging, or sourcing more environment-conscious?
Yes, ecological responsibility remains a key area of action. We’ve taken steps to reduce our carbon footprint during distillation, introduced recyclable packaging solutions, and engaged with suppliers aligned to our sustainability goals. These initiatives are reviewed regularly to ensure alignment with industry benchmarks. As operations scale, these commitments will remain embedded in our practices.
With AI and digital tools reshaping every sector, do you see them influencing the alco-bev industry? If yes, how are you integrating tech into operations or consumer engagement?
Digital tools and artificial intelligence are helping brands operate with sharper insight and responsiveness. We use these to assess buying patterns, optimise supply logistics, and fine-tune campaign strategies. Real-time input enables us to test new formats and strengthen distribution agility. Whether through customisation, product planning, or service, tech is infused into our everyday decision-making.
You belong to a legacy known for building bold, category-defining ventures. What’s your approach to balancing tradition with modern disruption in your current role?
I work to retain the values that have shaped our foundation, while introducing newer methods suited to today’s context. We combine legacy knowledge with contemporary tools. This mix allows us to evolve while holding on to the consistency and ethics that define us. Progress doesn’t require replacing the past; it calls for building on it thoughtfully.
India’s position in the global alco-bev map is evolving fast. Are you seeing opportunities to export Indian premium spirits? Is that part of Modi Illva’s next phase?
Absolutely. India is gaining attention globally for spirits with character and quality. We believe our brands have the depth to connect with international audiences. Regions like Southeast Asia, Europe, and the Middle East are receptive to well-crafted Indian whisky. We’re actively assessing overseas entry points and see this as a natural extension of our domestic progress.
Looking ahead, what are the biggest milestones or breakthroughs you’re hoping to achieve, either as a business or personally as a leader?
Our target as an organisation is to become India’s third-largest alco-bev player. I would like to shape a label that delivers clarity, originality, and high standards. Rockford has established itself among premium blends, but the journey ahead involves stronger global recognition. This next chapter is an opportunity to contribute to India’s presence in the world of whisky.
Rapid Fire
Blended whisky or single malt: what’s your go-to?
Blended whisky.
One Indian city where you would love to launch an exclusive limited edition?
Keeping state policy in mind…maybe Goa or Gurugram.
Big branding campaign or silent disruptor, what’s more your style?
Definitely silent disruptor. I believe in the product to speak for itself.
Your favourite bar anywhere in the world?
The Connaught in London
If you weren’t building spirits, what would you be doing?
Building a disruptive retail brand in grocery business
What’s one thing people would be surprised to learn about you?
I am quite an open book. What you see is what you get!
75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
One in four Scotch distillers expect to make job cuts as a result of economic headwinds
76% say an increase in duty would make them less likely to take forward capital investment and recruitment
Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).
India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.”
Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”
Over two thirds of price goes in taxes
Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.
Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.
Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.
As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.
This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.
Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.
“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.
“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.
“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”
High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.
The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.
The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.
Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment.
India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024.
However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India.
Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year.
“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.
“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.
“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”
These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.
Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.
Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.
The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.
Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.
Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.
While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.
Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.
Piccadily Agro Industries Limited has relaunched Whistler Barrel Aged Blended Malt Whisky, featuring new packaging and premium blend.
Piccadily said that Whistler’s new avatar is a celebration of barrel ageing, maturation and the art of blending. The finest matured malt and grain spirits have been handpicked and aged in oak wood barrels, creating a whisky that’s smoother, more elegant and even more memorable than before, it said. Inspired by the Whistler Warbler, a vibrant songbird native to the region of Indri, the packaging reflects the whisky’s premium ethos with a modern and sophisticated design.
The relaunched Whistler expression offers a more layered and complex drinking experience—crafted for today’s evolving palate, yet grounded in traditional whisky-making excellence.
Tasting Notes:
Nose: Warm and inviting, with dried apple and apricot at the forefront. Vanilla cream and caramelised malt add delicate sweetness, complemented by toasted oak, cinnamon, and floral hints.
Palate: Silky and well-rounded with a rich malt core. Notes of toffee, pineapple, and vanilla glide through the sip, underscored by gentle spice and warmth.
Finish: Medium to long, leaving a graceful trail of mellow sweetness and soft refinement.
Whistler Whisky (750 ml / 42.8% ABV) will be available across premium retail outlets and on-trade venues across India, with plans for export expansion in the coming months, the company said.
“Whistler’s new premium look is more than a brand refresh — it’s a strategic play to capture the next wave of premium whisky consumers,” said Praveen Malviya, CEO – IMFL, Piccadily Agro Industries Limited. “With its elevated blend and bold new identity, Whistler is poised to disrupt the mid-premium segment. Our goal is ambitious — 1 million cases in the next three years — and we’re confident Whistler will become a powerhouse brand that redefines what Indian blended malts can achieve.”
In a podcast conversation with Bhavya Desai,Rakshit Jagdale, Managing Director of Amrut Distilleries, has spoken at length about the company’s expansion plans and the journey of how a practical project during his MBA days in the UK led to the first-ever launch of an Indian Single Malt whisky, charting a path which many others have followed subsequently, making India proud of its strides in the alcobev sector.
engaluru-based Amrut Distilleries, the firm that put Indian Single Malt whisky on the global map, is in an expansion mode. Beginning April 2025, Amrut Distilleries is adding 35% more to its distillation capacity, taking it from 900,000 litres to about 1.4 million litres, according to its Managing Director, Rakshit Jagdale. It was only in 2018, the company had trebled its distillation capacity.
`1,000 crores net sales target
Amrut Distilleries’ current business in volume terms is over 6.3 million cases per annum with turnover at ₹540 crores net sales, gross sales being ₹1,750 crores. “The projections are to touch ₹1,000 crores net sales in about 10 years’ time, growing at 10 to 15%. We are quite confident, we will sustain. For us bottom line is important. We can chase turnover with economy, but we want to have strong EBITDA. There is scope for luxury and premium segment to grow further and strengthen the bottom line.”
Dilution of stake
Asked whether the closely-held family concern would be diluting its stake, Jagdale said, “There has been a lot of interest in our group over the past six to seven years. We have had discussions at the family board level, but we have not taken that call yet. We cannot shy away for too long. We are looking at a partner who will add value to the brand and also give global market accessibility, if at all we go that way.” IPO (initial public offering) is another route which the company is looking at it from a long- term perspective. “We are not there as yet. I personally feel, it will be a couple of years more, before we take that call.”
Meanwhile, Amrut Distilleries is also exploring avenues to set up a new distillery to cater to the bulk market. “We are seriously looking at the bulk side, impending the Free Trade Agreement (FTA) with the United Kingdom.”
FTA and its impact
On whether there would be a downward revision in the prices of premium whisky in India, post FTA, Jagdale said, “It is certainly round the corner and it will post a fair bit of challenges. Brands like Glenfiddich, coming down from their current levels, will affect. We don’t know what is going to be their strategy, but they will put pressure on us to come down by ₹500 to ₹1,000 from what we are selling at currently. The bottomline will get compromised but we should stay put.” The shelves will have Indian single malts and BIO (bottled in origin) Scotch and consumer preferences around that point of time has to be factored in. “We have to wait and see.”
Weary of unhealthy competition
Stating that the Indian market offered massive opportunities, Jagdale mentioned, “Everybody wants to be in India now. They want to jump on Indian single malt bandwagon. They are serious and we are serious too on what we are doing.” Diageo has launched Godawan Indian single malt whisky, Pernod Ricard is setting up a single malt distillery and there are a host of Indian distillers, about five to seven of them, who will hit the market in the next two to three years. There is Ian Macleod coming. “Competition is most welcome and it keeps you on your toes, improves processes quickly and rapidly. Just hope that it doesn’t go the path of unhealthy competition.”
Amrut’s market focus
Giving details of its market bifurcation, Jagdale stated, “This year, of our total business is 95% domestic and 5% export market. Within the luxury division, we are 35% export and the rest domestic. “In the premium range, we have MaQintosh Premium whisky, Silver Edition whisky, Two Indies Rum, and Nilgiris Dry gin. The mass market category includes Amrut XXX rum, Prestige whisky, Silver Cup brandy. From a volume point of view, we would be 70% economy and from topline point of view 25% would be luxury and 10% would semi-premium and premium categories.”
Pain Points, Excise Tops the List
Talking about excise duties, Jagdale said, “We are a highly regulated industry. Time has come to deregulate it. We are still following laws enacted by the British, while we have technology. There is a massive trust deficit between the government and the alcobev industry, hoping that the perception the governments have about the industry changes. Hopefully, it will have happen in my lifetime, would like to see that happen.” Agreeing that presently the governments are willing to listen to the industry and amend rules, he said, “there is hope.”
South Heavily Taxed
Jagdale stated that the southern states are highly taxed. “If you look at Punjab, Haryana and other northern states, the taxes are not as high as here. For instance, if the MRP (maximum retail price) is ₹100, the manufacturer gets roughly about ₹11, the retailer gets ₹9, the rest goes to the government. Agreed that the government has its own compulsions of running welfare programmes and other schemes, we appreciate that, but there has to be a balance going forward.” The governments, unlike earlier days are now open to dialogue which can only get positive, he hoped.
Is alcobev profitable business?
Quizzed about whether the alcobev sector is a profitable business, considering that it highly regulated, Jagdale’s advice is “Get into the premium and luxury segment. It is not worth to be in the mass market. You may achieve volumes in a couple of years, but you are not going to make any money. It takes minimum of four years, one should have the patience and the ability to invest for that long a time.”
His guestimate is that a 1000 litre per day plant will require a minimum capex investment of ₹25 crores and there would be working capital. “There is no guarantee that it will succeed in four years’ time. One should have the patience.” The route budding entrepreneurs could take is getting in gin manufacturing or matured rum category or vodka at the premium end. “Then you can pick up white, brown and dark spirits.”
The consumer of today
Emphasising the need to go premium, Jagdale explained that the present day consumer is highly discerning. “Globally we see a lot of youngsters have taken up to single malt whisky in a very big way, especially in the US, India, Europe. One thing we have observed with the advent of internet, is that the knowledge levels of the consumer has gone up significantly. Youngsters know more about whisky and other spirits much more. This keeps us on our toes. The consumer profile has changed. The younger generation is willing to spend more, drink better, drink less as they are health conscious too.”
